Trade Liberalization and Economic Growth in Iranian Economy

The goal of this study is to investigate the effect of trade liberalization on economic growth in Iranian economy using a Cobb-Douglas production function, which is expanded to take into account political instability and trade liberalization. The empirical results show that in the long run the real export and import duty have positive effect on GDP, while the Labor force and education causes to decrease the GDP. Moreover the Iranian activity to become a membership of WTO (as a proxy of trade liberalization) is an effective factor on economic growth in Iran